Ningbo Semu (301019) issued an announcement on September 9, 2021: Zhou Yun of Shanghai Oriental Securities Asset Management Co., Ltd., Wang Yuanggang of Qingxing Investment Management (Shanghai) Co., Ltd., Liu Hanyun of Beijing Sunshine Tianhong Asset Management Co., Ltd., Octorivers Hu Jinge, Ma Ziqiang of Donghai Securities Co., Ltd., Lizhen Investment Zhang Wei, Zhao Xiang, CSC FINANCIAL CO.,LTD and Deng Sheng of Guohua Life Insurance Co., Ltd. Zheng Yong, HSBC Jinxin Luo Zhiyuan, Xu Xun, Zheng Xiaobing investigated our company on August 31, 2021. Chen Jianguo, secretary of the board of directors, is responsible for the reception of this survey.

The main contents of this survey are as follows:
The secretary of the board of directors gives a brief introduction to the operation of the company in the first half of the year. The main contents are as follows: (1) the main performance of the semi-annual report in 2021 in the first half of 2021, the overall operation of the company advanced steadily on the basis of strategic planning, and the total operating income of the company reached 24, 6.9288 million yuan, an increase of 35.21% over the same period last year. The net profit belonging to shareholders of listed companies was 5, 209200 yuan, an increase of 38.29% over the same period last year. Net profit after deducting non-recurring profit and loss was 4, 5.8506 million yuan, an increase of 29.82% over the same period last year. (2) the introduction of the company's business situation the company is mainly engaged in the research and development, production, sales and technical services of color masterbatch, and is committed to providing customers with customized plastic coloring products to accurately meet their plastic coloring and functional needs. Is a high-tech enterprise with independent R & D and innovation ability. The company's main products are color masterbatch, white masterbatch, black masterbatch, functional masterbatch, etc. The company's products are widely used in electronic and electrical appliances, daily necessities, food and beverage, chemical, daily chemical, building materials, agriculture, automobile, medical and other fields. It has been widely used in high-end household appliances, food and beverage packaging, optical films and other fields that require high performance, high standards and high quality products. And with LG Group, NONGFU SPRING CO., LTD., Wa, Panasonic, Nice, Deli Group, Changyang Technology (688299), Opu Lighting (603515), Dongfang Yuhong (002271), Supor (002032), Daijin Air conditioning and many other well-known enterprises to establish long-term and stable relations of cooperation. The company is one of the earliest units engaged in the research and production of color masterbatch in China. Since its establishment, it has focused on the research, production, sales and technical services of color masterbatch. After years of development, it has become a leading supplier of plastic color masterbatch in China. The company's production and sales volume, sales volume and market share of color masterbatch products are among the best in the industry, among which the market share of color masterbatch is the first in China for many years in a row. The company's main products are full chromatographic plastic color masterbatch, which mainly includes color masterbatch, white masterbatch and black masterbatch., The company can customize the functional color masterbatch with two-in-one coloring function according to the special needs of downstream customers, so that it has one or more functions such as anti-ultraviolet, weather-resistant, antistatic, smooth, flame retardant and so on. Color masterbatch can be widely used in PE, PP, AS, PET, EVA, ABS and other plastic products, and finally used in electronic and electrical appliances, daily necessities, food and beverage, daily chemical, building materials, agriculture, automobile, medical and other industries. In addition, other coloring materials provided by the company mainly include dyeing granulation and toner.
Second, questions raised by research institutions
Question 1: what is the overall business goal of the company? A: in the next three years, the company will be market-oriented, combined with product structure optimization, open up new areas of application of plastic products, and develop new high-end products that adapt to the market. Improve R & D and production equipment, improve production process, increase production capacity, and ensure high product quality on the premise of increased production speed and efficiency. The company will continue to improve the product color matching technology and constantly improve and update the full chromatographic formula database, strengthen the leading advantage of the company's plastic coloring customized product supply, and expand the production scale around the fund-raising project. improve the company's comprehensive competitiveness.
Question 2: what is the market scale of the color masterbatch industry? A: the downstream plastic products industry has a huge scale and continuous development. The number of enterprises above the scale of China's plastic processing industry increased from 12963 in 2011 to 15835 in 2019. In the same period, the main business income of enterprises above scale increased from 1.558374 trillion yuan to 1.907748 trillion yuan, with an average annual compound growth rate of 2.56%. In 2011, the cumulative output of enterprises in China's plastic products industry was 54.7431 million tons, and in 2019, the cumulative output of enterprises in China's plastic products industry was 81.8417 million tons. The good development trend of the plastic industry brings huge opportunities and space for the development of the color masterbatch industry. As far as the color masterbatch industry itself is concerned, the total domestic production of color masterbatch from 2017 to 2019 is 1.523 million tons, 1.648 million tons and 1.8 million tons respectively, maintaining continuous growth.
Question 3: what is the company's R & D model? A: the company adopts independent research and development model and has independent intellectual property rights of a number of core technologies. The R & D strength of the company takes the experienced technical personnel with innovative spirit as the core, based on the advanced color matching technology and mature production technology mastered by the company, and the development of the company's R & D activities are close to the market demand. to customer demand and market demand-oriented research and development of new products, new processes, new technologies. The company carries out R & D projects in accordance with the regulations on Scientific Research Project Management and other systems, and carries out the process of project establishment, implementation and acceptance of R & D projects.
Question 4: what is the company's annual gross profit margin in 2021? Answer: as of June 30, 2021, the gross profit margin of white masterbatch is 26.90%, that of black masterbatch is 43.09%, and that of color masterbatch is 39.28%.
Question 5: what is the periodicity of the industry? Answer: at present, color masterbatch is mainly used for coloring and functional modification of plastic products, and is widely used in electronic and electrical appliances, daily necessities, food and beverage, chemical, daily chemical, building materials, agriculture, automobile, medical and other industries, therefore, there is a certain correlation between the business cycle of the industry and the operation cycle of the macro-economy. However, due to the numerous application fields of color masterbatch products and the dispersion of product types, the color masterbatch industry is less affected by a single industry. The operating status of the color masterbatch industry will be affected by multiple factors, such as the macroeconomic environment, upstream raw materials, downstream plastic products processing industry and so on. Therefore, the changes of the national macroeconomic situation and the adjustment of relevant industrial policies will affect the prosperity of the color masterbatch industry.
Question 6: what are the reasons for the increase in operating income and operating costs in the company's financial data for the first half of 2021 compared with the previous year? Answer: as of June 30, 2021, the increase in operating income compared with the previous year is due to the increase in sales orders of the company, especially the obvious increase in black masterbatch, while the increase in operating costs compared with the previous year is due to the year-on-year growth of sales business and the rise in raw material costs. the transportation charges calculated under the original sales expense account are adjusted to the cost of the main business.
Question 7: what are the challenges facing the industry? Answer: at present, the formulation of industry standards in China's color masterbatch industry can not match the characteristics of various types of products and a wide range of applications in this industry. The number of existing industry standards is relatively small and the coverage is narrow. It is not conducive to leading the industry to standardization, standardization and specialization, and is not conducive to the product technology upgrading and product competitiveness of color masterbatch production enterprises. With the continuous development of the color masterbatch industry, the imperfect industry standard system restricts the future development of the industry more and more prominently.
Question 8: what is the seasonality of the industry? Answer: color masterbatch industry has a wide range of downstream applications, and its production and sales do not have obvious seasonal characteristics.
Question 9: how is the company's fundraising project going? A: the related fund-raising projects of our company are being carried out in accordance with the original plan. Note: in strict accordance with the provisions of the Information Disclosure Management system, the company ensures that the information disclosure is true, accurate, complete, timely and fair. There is no leakage of major undisclosed information.

Ningbo Color Masterbatch main business: general projects: plastic products manufacturing; plastic products sales; housing leasing; non-residential real estate leasing (except for projects that must be approved by law, independently carry out business activities according to law on the basis of business license). Licensed projects: technology import and export; goods import and export; import and export agents (projects that must be approved according to law can only be carried out after approval by relevant departments, and the specific business projects shall be subject to the results of examination and approval).

Ningbo Semu 2021 reported that the company's main income was 247 million yuan, up 35.21% from the same period last year; net profit from its parent was 50.2092 million yuan, up 38.29% from the same period last year; deducting non-net profit from 45.8506 million yuan, up 29.82% from the same period last year; debt ratio 9.31%, investment income 274700 yuan, financial expenses-602300 yuan, gross profit margin 33.84%.